HSIL Plans To Set Up Glass-making Facility In Hyderabad For Rs 80 Cr

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New Delhi, July 2: Buoyed by a steady growth in the glassware products market, Hindustan Sanitaryware & Industries Ltd (HSIL) has decided to set up a new glass unit in Hyderabad with a total investment of Rs 80 crore.

"It has been an exceptionally good year for our glass division and we are now setting up a new modern, energy efficient amber glass plant in Hyderbad," HSIL joint managing director Sandip Somany told the FE.

The company’s glass division which caters to the end users, such as softdrink, cosmetics, processed foods, pharmaceuticals and liquor manufacturers, contributes almost 55 per cent to the company’s total turnover of Rs 305 crore. The other division is the sanitaryware division, which contributes 45 per cent to revenues.

HSIL’s new glass manufacturing plant will become operational by September 2004 and will increase the company’s total glass manufacturing capacity by 40,000 tonne per annum, taking it up from the current 1 lakh tonne to 1.4 lakh tonne per annum.

According to Mr Somany, the company has been able to improve the performance of its glass division substantially over the last two years. The division which made cash profit only in 2001-02 registered a growth of 26.5 per cent during the year 2003-04, he said.

Expecting a steady 8-10 per cent growth in the market for glassware products, Mr Somany said: "Demand for glass is good, fuelled by an increase in the food, aerated, pharma and packaged food products."

Meanwhile, the company is also eyeing acquisitions in the category. "We could look at acquisitions. In fact, we are always on the look out for acquisition of good asset," Mr Somany said.